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Garagekeepers Liability

Garagekeepers Liability

Towing companies and automotive service stations have a lot of insurance options to think about. From premises liability to workers compensation and even tool coverage, there are several moving parts to keep a business like this properly insured. There is one facet of insurance for these businesses that is often overlooked because it is considered “optional”: Garagekeepers Liability. It can and should be an important part of your insurance portfolio. What Is Garagekeepers Liability? Garagekeepers Liability insurance is liability insurance that protects a customer’s vehicle when you are keeping it at an insured location for parking or storing or to perform service. This means the vehicle is under your care, custody, and control, and that if it is damaged, your business would be responsible. Care, Custody And/Or Control Why is care, custody, and control important? Because in the Garage Coverage Form (CA 00 05) anything under your care, custody, and control is excluded: But I Have Garage Legal Liability… Garage Liability and Garagekeepers Liability are not the same coverage. In terms of auto insurance, think of it this way: Garage Liability is like having liability coverage only on your vehicle. If you get into an accident the other person’s vehicle is covered by your insurance, but yours isn’t. Garagekeepers Liability is like having “full coverage” insurance for your vehicle. For example: A customer brings his vehicle in for service. Your employee does the work and then takes the vehicle out for a test drive. The mechanic is involved in an auto accident. The customer’s vehicle is totaled, as is the vehicle of the other driver. Garage liability would pay...